Diamond Sports Group on Wednesday announced that it is entering a restructuring agreement with creditors, including Amazon, to emerge out of debt. The media company, which operates Bally Sports, declared bankruptcy last March after entering into expensive advertising agreements and a consumer shift to cord-cutting.
As part of the agreement, Amazon will invest $115 million in the company, giving its Prime Video users access to Diamond’s sports content, should the deal go through pending court approval.
Diamond oversees 18 networks as a part of Bally Sports, which has the rights to 14 NBA, 11 NHL, and 11 MLB teams. Prime users will be able to purchase access to stream their local Diamond channels and view live games across the three sports, as well as select pre-and post-game coverage.
“We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024,” said Diamond Sports CEO David Preschlack in a statement. “We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business.”
Amazon will also gain the streaming rights for all regular season games for the Detroit Tigers, the Kansas City Royals, the Miami Marlins, the Milwaukee Brewers, and the Tampa Bay Rays.
Creditors will provide Diamond with an estimated $450 million to help the company get out of debt and continue operations.
Diamond was acquired by Sinclair Broadcast Group in 2019 from the Walt Disney Co. for an estimated $10 billion.
However, Diamond sued Sinclair after alleging Sinclair took up to $1.5 billion from Diamond’s business. In a separate settlement, Sinclair has agreed to pay Diamond $495 million and provide operational help to assist in Diamond’s reorganization.